Home Loans May Get Shield
Federal regulators are considering giving mortgage lenders protection from certain lawsuits, according to insiders, a move designed to encourage lending to well-qualified borrowers. The proposal for the first time would establish a basic national standard for loans, known as a "qualified mortgage." As part of its deliberation, the Consumer Financial Protection Bureau is considering providing a full legal shield for high-quality loans that qualify, mandating that judges rule in lenders' favor if consumers contest foreclosures. For a smaller category of loans that still meet the "qualified mortgage" guidelines but carry higher interest rates, lenders would receive fewer protections. In those cases, consumers could argue in court that lenders should have known that they couldn't afford the mortgage.
From "Home Loans May Get Shield"
Wall Street Journal (10/16/12) Zibel, Alan
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